In this article, we will take a look at some of the best dividend stocks according to billionaires.
Dividend-paying stocks have traditionally been seen as a solid foundation for investment portfolios, offering steady income and helping cushion the impact of market swings. However, despite these advantages, they occasionally trail the broader market—often overshadowed by more high-profile opportunities. Over the past couple of years, for example, dividend stocks underperformed as investors flocked to tech stocks. But following the recent market correction and the renewed pressure on tech shares due to tariffs introduced by Trump, dividend stocks have started to regain investor interest.
The Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has fallen by nearly 2% since the start of 2025, compared with a nearly 8% decline in the broader market. This trend suggests that dividends are regaining momentum, with a growing number of companies initiating dividend policies while existing payers are steadily boosting their payouts to attract investors. According to a report by S&P Global, 408 constituents of the broader market are projected to pay dividends in 2025. Of these, nearly 350 are expected to raise their dividends over the next four quarters, contributing to an estimated 6% year-over-year growth in total dividends. In the broader US market, aggregate dividend growth is forecasted at 4.6% for 2025. Given that S&P companies account for approximately 85% of all dividends paid in the US, the index serves as a strong indicator of overall dividend trends in the market.
The long-term value of dividend-paying stocks remains strong, particularly for investors seeking to reduce risk without giving up on growth potential. Ramona Persaud, portfolio manager of the Fidelity Equity-Income Fund and Fidelity Global Equity Income Fund, tends to favor high-quality companies that offer solid dividends and are reasonably priced. She pointed out that falling interest rates can create a favorable environment for dividend stocks, as their yields become more attractive compared to bonds. Persaud also noted that lower rates could help broaden market gains, unlike the recent trend where performance was largely driven by a few mega-cap growth names.
Her investment approach centers on companies with strong balance sheets, consistent cash flows, and high return potential. She also emphasized the importance of valuation—looking for stocks that are well-priced relative to their peers and historical levels—while seeking dividend yields that stand out in the current market. This combination of quality, value, and income has, according to her, helped the fund perform well in both rising and falling markets. She made the following comment about dividend stocks and their appeal:
“Ideally, I look for a stock that has a combination of these factors. I can’t always get all 3, so I look for a good balance of them. If I can get higher quality at a cheaper price, and the company pays a compelling dividend, that’s when a stock is really interesting to me.”
Given this, we will take a look at some of the best long-term dividend stocks according to billionaires.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology
To compile this list, we screened for dividend stocks that have strong financials and solid dividend policies. From that group, we picked 10 companies that were most popular among billionaire investors, as per Insider Monkey’s billionaire database of Q4 2024. The stocks are ranked according to the number of billionaires having stakes in them.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Ecolab Inc. (NYSE:ECL)
Number of Billionaire Holders: 15
Ecolab Inc. (NYSE:ECL) is a Minnesota-based water treatment and cleaning solutions company. It is mainly recognized for its focus on sustainability and innovation, and it supports clients in reducing their environmental footprint while enhancing operational performance. Its range of products spans water and energy management solutions, infection control systems, and other efficiency-driven offerings. The stock has surged by over 3% since the start of 2025.
In the fourth quarter of 2024, Ecolab Inc. (NYSE:ECL) reported revenue of $4 billion, which showed nearly 2% growth from the same period last year. The company also reported a 4% increase in organic sales, driven by faster growth in its Industrial and Healthcare & Life Sciences segments, along with continued solid performance in the Pest Elimination and Institutional & Specialty divisions. In terms of regional performance, the US led with particularly strong organic sales growth, while international markets also saw positive results, as new business gains outweighed the challenges posed by varying macroeconomic conditions. The company’s reported operating income margin stood at 14.6%.
Ecolab Inc. (NYSE:ECL) also demonstrated a strong cash position in FY24. The company’s operating cash flow and free cash flow for the year came in at $2.8 billion and $1.8 billion, respectively. Due to this cash position, the company was able to increase its payouts for 33 consecutive years, which makes it one of the best dividend stocks according to billionaires. The company offers a quarterly dividend of $0.65 per share and has a dividend yield of 1.09%, as of April 15.
9. Starbucks Corporation (NASDAQ:SBUX)
Number of Billionaire Holders: 15
Starbucks Corporation (NASDAQ:SBUX) is a Washington-based chain of coffeehouses and roastery reserves. The company’s brand remains its strongest competitive advantage, giving the leadership team a reliable platform to build on. Since taking over in September, CEO Brian Niccol has launched a “Back to Starbucks” strategy aimed at steering the company back on course.
In the first quarter of fiscal 2025, Starbucks Corporation (NASDAQ:SBUX) posted a consolidated net revenue of $9.4 billion, which remained steady compared to the previous year when adjusting for currency effects. During the quarter, the company added 377 new stores, bringing its global total to 40,576. Of these, 53% are company-operated, while the remaining 47% operate under licensing agreements. By the end of the quarter, the US and China together made up 61% of Starbucks’ global store network, with 17,049 stores in the US and 7,685 in China.
Starbucks Corporation (NASDAQ:SBUX) is one of the best dividend stocks as the company has been paying regular dividends for the past 59 quarters. During this period, the company’s payouts have grown at a CAGR of 20%. Moreover, it has raised its payouts for 14 years in a row. The company pays a quarterly dividend of $0.61 per share and has a dividend yield of 2.91%, as of April 15.